Question

3. Does the UCC apply to the case? Why or why not?

CASE SUMMARY 18.2 Mennonite Deaconess Home & Hospital, Inc. V. Gates Engineering Co., 219 Neb. 303, 363 N.W.2d 155 (1985) Express and Implied Warranties Mennonite Deaconess Home & Hospital (MDHH) experienced leaks in its roof and hired a contractor to install a new roof that was manufactured by Gates. A Gates representative made statements to MDHH and offered brochures that described the roofing system. MDHH relied on the Gates representative's skill and knowledge to select the appropriate roof. The contractor installed the roof, which started leaking shortly thereafter. MDHH sued Gates for breach of warranty. The court found in favor of MDHH. CASE QUESTIONS 1. Was an express warranty created? Explain. 2. Were any implied warranties created? Explain.

Answer 1

1. An express warranty is created when the contractor would have assured guarantee of the roofing system being leak proof. Instead in the actual scenario, the contractor had offered brochures to MDDH which described the roofing system. Though MDDH relied on the expert knowledge of the contractor in making the final decision, the contractor never expressed that the roofing system will be leak proof. Hence no express warranty was created.

2. Implied warranty is more like an assumption. When MDDH relied on the skills and expertise of the Gates representative for the final choice of the roofing system, the company would have assumed that as they were facing leak problem, the representative would base the selection of roofing system based on non-leakage criteria. Hence there was an implied warranty in the transaction. The implied warranty of the product being fit for solving the leakage problem was made by the Gates representative to MDDH.

3. The UCC covers 2 types of implied warranty – warranty of merchantability and warranty of the product being fit to be used for specific purpose. In the given case, the warranty of product being fit to be used to solve the leaking problems was made, hence there was applicability of UCC to the case.

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